White v. Lee

Resources for Community Development (RCD) sought a permit to convert a motel into housing for the homeless. Alexandra White, Joseph Deringer, and Richard Graham (the neighbors) (plaintiffs), who lived near the motel, expressed their opposition by writing to the city council, speaking at public meetings, publishing articles, speaking to the press, and trying to persuade merchants to oppose the conversion. The zoning board granted the permit. A neighborhood coalition filed a lawsuit challenging the conflict of interest of a zoning-board member who was also on RCD’s board. A housing-rights group complained to the United States Department of Housing and Urban Development (HUD) about the neighbors’ discriminatory flyers claiming the incoming homeless would be mentally ill or substance abusers. Although the Fair Housing Act (FHA) set a 100-day deadline for investigating complaints, local HUD officials (the officials) (defendants) investigated the neighbors for over eight months. The officials directed the neighbors to produce volumes of documents and information about opposition efforts, interrogated the neighbors about their views and public statements, told the neighbors they violated the FHA, told a newspaper the neighbors broke the law, and advised the neighbors to accept a proposal requiring them to cease all litigation and publication regarding the conversion. HUD’s Washington, D.C., office concluded there were no grounds to proceed against the neighbors. The neighbors sued the officials, claiming the officials had investigated and harassed them for exercising their First Amendment rights. The officials argued, in part, that the FHA required them to investigate whether the conflict-of-interest lawsuit was filed with a discriminatory motive. The trial court granted the neighbors summary judgment. The officials appealed.